Stock fact sheet · data as of
Chimera Investment Corporation (CIM): fair value, margin of safety and Wheel Score
Real Estate · REIT - Mortgage · United States · High Growth
Is CIM undervalued?
Chimera Investment Corporation (CIM) closed at 8.55 on 16 Oct 2026, 74% above the GLS average fair value of 4.92. 5 of the 6 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between Lynch (0.0013) and DDM (25.31). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files CIM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for CIM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 3.06 | -64% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 0.1226 | -99% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.0013 | -100% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.8846 | -90% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 25.31 | +196% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 0.1605 | -98% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -153.52 | -1896% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.75 | +26% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Chimera Investment Corporation scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 1.5%, ROE 9.0%, ROA 1.5% - with debt at 5.08 times equity and negative free cash flow. Debt of 5.08 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 20.12% (payout ratio 22387%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Investment Advisory Services 100% (quarter Q3 FY2019).
Institutional ownership scores 7/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 1.5% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 9.0% |
| Debt / equity | 5.08 | ROA | 1.5% |
| Free-cash-flow yield | -20.0% | Payout ratio | 22387% |
| Institutions | 7 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 46: Weak
With a Wheel Score of 46 Chimera Investment Corporation sits in the Weak band. The parts - Value 0/25, Health 9/20, Moat 4/15, Premium 20/20, Stability 13/20 - show where: Value (0/25) scores lowest.
Implied volatility is 45% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 27,748 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.7M shares a day on a market cap of $715M, with a beta of 1.80 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -74% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 20 / 20 | implied volatility 45% | |
| Stability | 13 / 20 | 1.7M shares/day, $715M cap, beta 1.80 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Chimera Investment Corporation reports earnings on 29 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in REIT - Mortgage
The 12 companies below are the closest to Chimera Investment Corporation by market cap within the REIT - Mortgage industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ADAMG Adamas Trust, Inc. - 9.125% Senior Notes Due 2030 | 24.36 | 154.15 | +84% | 38No options | $714M |
| ADAMH Adamas Trust, Inc. | 24.86 | 156.94 | +84% | 38No options | $710M |
| ADAMM Adamas Trust, Inc. | 24.50 | 154.93 | +84% | 38No options | $705M |
| ADAMI Adamas Trust Inc. 9.125% Sr. Notes due 2029 | 24.73 | 156.21 | +84% | 38No options | $704M |
| ADAMO Adamas Trust, Inc. 9.250% Senior Notes Due 2031 | 24.25 | 45.03 | +46% | 32No options | $701M |
| ADAM Adamas Trust, Inc. | 7.79 | 44.42 | +82% | 80Prime | $700M |
| CIMN Chimera Investment Corporation | 24.92 | 5.30 | -371% | 20No options | $732M |
| CIMP Chimera Investment Corporation | 24.67 | 5.80 | -325% | 11No options | $734M |
| ADAML Adamas Trust, Inc. - 6.875% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, $0.01 par value per share | 23.69 | 150.42 | +84% | 38No options | $697M |
| ADAMZ Adamas Trust, Inc. 7.000% Series G Cumulative Redeemable Preferred Stock | 15.70 | 105.91 | +85% | 38No options | $689M |
| ADAMN Adamas Trust, Inc. | 22.91 | 94.82 | +76% | 39No options | $679M |
| MFAO MFA Financial, Inc. 9.000% Senior Notes | 25.10 | 115.10 | +78% | 39No options | $679M |
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Start free See the Sunday ScanQuestions about CIM
Is CIM undervalued right now?
No: at 8.55 the stock trades 74% above the GLS average fair value of 4.92 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of CIM and what does it mean?
CIM scores 46 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for CIM?
4.92 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Chimera Investment Corporation report earnings next?
The next earnings report is due on 29 Oct 2026 (before the open), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does CIM have listed options, and how liquid are they?
Yes. The nightly snapshot found 170 listed contracts with 27,748 open interest across all expiries and implied volatility of 45% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.